Concluding his excellent survey of recent monetary theory, Harry Johnson [4] suggested that future developments in this field should come from attempts "to break monetary theory loose from the mould of short-run equilibrium analyses, conducted in abstraction from the process of economic growth and accumulation, and to integrate it with the rapidly developing theoretical literature on economic growth." This paper summarizes an attempt to deal with these issues. Like most theoretical work in rapidly growing fields, it is incomplete and the assumptions on which it is based are relatively crude abstractions. These abstractions, however, allow us to explore certain aspects of the interaction of the real and the monetary phenomena in a model of economic growth in which money, being government noninterest bearing debt, is introduced as an alternative asset to real capital. Most of the recent work in this field 1 has centered on the analysis of the patterns of growth of a monetary economy by postulating alternative plausible saving functions and demand functions for money. What differentiates this product is the fact that, in line with Patinkin's [6] presentation of the neoclassical theory of money, and with the classical Fisherian theory of saving [2], it is based on an explicit analysis of individuals' saving behavior, viewed as a process of wealth accumulation aimed at maximizing some intertemporal utility function. The first part of the paper describes the representative economic unit